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A Company Hopes to Improve Its Engines, Setting a Goal 3%3 \%

Question 3

Multiple Choice

A company hopes to improve its engines, setting a goal of no more than 3%3 \% of customers using their warranty on defective engine parts. A random survey of 1400 customers found only 30 with complaints. Create a 95%95 \% confidence interval for the true level of warranty users among all customers.


A) Based on the data, we are 95%95 \% confident the proportion of warranty users is between 2.0%2.0 \% and 2.9%2.9 \% . Therefore, the company has met its goal.
B) Based on the data, we are 95%95 \% confident the proportion of warranty users is between 1.4%1.4 \% and 2.9%2.9 \% . Therefore, the company has met its goal.
C) Based on the data, we are 95%95 \% confident the proportion of warranty users is between 1.4%1.4 \% and 3.8%3.8 \% . Therefore, the company has not met its goal.
D) Based on the data, we are 95%95 \% confident the proportion of warranty users is between 1%1 \% and 3%3 \% . Therefore, the company has met its goal.
E) Based on the data, we are 95%95 \% confident the proportion of warranty users is between 0%0 \% and 2.9%2.9 \% . Therefore, the company has met its goal.

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